close

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

 

Government of India

Ministry of Finance

(Department   of Revenue)

 

Notification  No. 2/2019-Central  Tax (Rate)

 

New Delhi,   the 7th March, 2019

 

G.S.R......(E).- In exercise of the powers conferred by sub-section (1) of section 9, sub- section (1) of section 11, sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (herein after referred to as the “said Act”), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby notifies that the central tax, on the intra-State supply of goods or services or both as specified in column (1) of the Table below, shall be levied at the rate specified in the corresponding entry in column (2), subject to the conditions as specified in the corresponding  entry in  column  (3) of the  said table  below, namely:-

 

Table

 

Description of supply

Rate (per cent.)

 

Conditions

(1)

(2)

(3)

First supplies   of   goods or services or both upto an aggregate turnover of fifty lakh rupees made on or after the 1st day of April in any financial year, by a registered person.

 

 

 

 

 

 

 

     3

1.Supplies are made by a registered person, -

i. whose aggregate turnover in the preceding financial year was fifty lakh rupees or below; ii.who is not eligible to pay tax under sub-section (1) of section 10 of the said Act;

iii.who is not engaged in making any supply which is not leviable to tax under the said Act;

iv.who is not engaged in making any inter-State outward supply;

v.who is neither a casual taxable person nor a non-resident taxable person;

vi.who is not engaged in making any supply through an electronic commerce operator who is required to collect tax at source under section 52; and

vii.who is not engaged in making supplies of the goods, the description of which is specified in column (3) of the Annexure below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said annexure.

 

 

 

 

 2.Where more than one registered persons are having the same Permanent Account Number, issued under the Income Tax Act, 1961(43 of 1961), central tax on supplies by all such registered persons is paid at the rate specified in column (2) under this notification.

3.The registered person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.

4.The registered person shall issue, instead of tax invoice, a bill of supply as referred to in clause (c) of sub-section (3) of section 31 of the said Act with particulars as prescribed in rule 49 of Central Goods and Services Tax Rules.

5.The registered person shall mention the following words at the top of the bill of supply, namely: - ‘taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies’.

6.The registered person opting to pay central tax at the rate of three percent under this notification shall be liable to pay central tax at the rate of three percent on all outward supplies specified in column (1) notwithstanding any other notification issued under sub-section (1) of section 9 or under section 11 of said Act.

7.The registered person opting to pay central tax at the rate of three percent under this notification shall be liable to pay central tax on inward supplies on which he is liable to pay tax under sub-section (3) or, as the case may be, under sub-section (4) of section 9 of said Act at the applicable rates.

1[8.Where any registered person who has availed of input tax credit opts to pay tax under this notification, he shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock and on capital goods as if the supply made under this notification attracts the provisions of section 18(4) of the said Act and the rules made there-under and after payment of such amount, the balance of input tax credit, if any, lying in his electronic credit ledger shall lapse.]

Explanation.-For the purposes of this notification, the expression “first supplies of goods or services or both” shall, for the purposes of determining eligibility of a person to pay tax under this notification, include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the said Act but for the purpose of determination of tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act.

 

 

ANNEXURE

 

Sl. No.

Tariff  item, sub-

heading, heading or Chapter

Description

(1)

(2)

(3)

1

2105 00 00

Ice  cream  and  other  edible  ice,  whether  or  not containing cocoa.

2

2106 90 20

Pan masala

3[2A

        2202 10 10

 

Aerated Water]

 

3

24

All  goods,  i.e. Tobacco and manufactured   tobacco substitutes

 

2. In computing aggregate turnover in order to determine eligibility of a registered person to pay central tax at the rate of three percent under this notification, value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented  by way of interest  or discount,  shall  not be taken into account.

 

3.Explanation. –For the  purpose  of this  notification, -

i.“tariff item”, “sub-heading”, “heading” and “chapter” shall mean respectively a tariff item, sub- heading, heading and chapters specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

 

ii.the rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the  General Explanatory Notes of the  First  Schedule  shall,   so far  as may  be, apply to the interpretation  of this notification.

 

2[(iii) the Central Goods and Services Tax Rules, 2017, as applicable to a person paying tax under section 10 of the said Act shall, mutatis mutandis, apply to a person paying tax under this notification.]

 

 

4.This  notification  shall  come into  force  on the  1stday of April,   2019.

 

[F. No.354/25/2019-TRU]

 

 

 

(Gunjan Kumar Verma)

Under  Secretary to the Government   of India

 

Note:

 

Sr.No

Change

Notification No.

Applicability Date

Particulars of Change

Remarks

 1

 Inserted

 09/2019-Central tax (Rate) dated March 29,2019

 March 29,2019

 ----

 ----

 2

 Inserted

 09/2019-Central tax (Rate) dated March 29,2019

  March 29,2019

 ----

 ----

 3

 Inserted

 18/2019-Central tax(Rate) dated September 30,2019

 September 30,2019

 ----

 ----